Market Overview

4 Reasons Behind Stifel's Neurocrine Bull Thesis

Share:
4 Reasons Behind Stifel's Neurocrine Bull Thesis
Related NBIX
52 Biggest Movers From Yesterday
Mid-Afternoon Market Update: Sparton Climbs On Acquisition News; Synergy Pharmaceuticals Shares Slide
Neurocrine Hit Hard As T-Force GOLD Turns To Lead (Seeking Alpha)

Neurocrine Biosciences, Inc. (NASDAQ: NBIX), which already has two strong drugs in the market in the form of Ingrezza and the recently approved elagolix, has a promising pipeline ahead, according to Stifel. 

The Analyst

Analyst Paul Matteis initiated coverage of Neurocrine with a Buy rating and $137 price target. The stock was added to Stifel's "Select List." 

The Thesis

Notwithstanding the run-up in shares, Neurocrine stock has scarcity value in the midcap space due to its "blockbuster lead asset, strong patent protection, multiple shots on goal and near-term profitability," Matteis said in the initiation note. 

These factors give a positive twist to Neurocine's long-term growth story even in the presence of very few attractive near-term clinical catalysts, the analyst said.

Stifel's bullish stance is predicated on four factors, Matteis said: 

  • Ingrezza, the company's lead asset for tardive dyskinesia, possesses blockbuster potential, the analyst said: nearly 8,000 patients who took Ingrezza in the second quarter and represent a small fraction of the total candidate pool. The analyst estimates that Ingrezza will hit the $1-billion mark in tardive dyskinesia sales in 2021.
  • The belief that Ingrezza has a reasonable chance of succeeding and expanding its market in Tourette's syndrome.
  • Stifel's projection that endometriosis-related pain treatment elagolix will generate close to $2 billion in cash flows.
  • The analyst's view that little of Neurocrine's remaining pipeline is priced into the stock.  

"We expect Neurocrine to continue to diversify its pipeline with both in-house candidates and the consideration of small acquisitions or licensing arrangements," Matteis said. 

The Price Target

Neurocrine Biosciences shares have gained roughly 50 percent year-to-date. 

Related Links:

Attention Biotech Investors: Mark Your Calendar For These August PDUFA Dates

The Week Ahead In Biotech: Conferences, PDUFA Dates And IPOs

Latest Ratings for NBIX

DateFirmActionFromTo
Dec 2018Goldman SachsInitiates Coverage OnBuy
Nov 2018Canaccord GenuityInitiates Coverage OnBuy
Nov 2018Leerink SwannInitiates Coverage OnMarket Perform

View More Analyst Ratings for NBIX
View the Latest Analyst Ratings

Posted-In: Paul Matteis StifelAnalyst Color Biotech Price Target Initiation Analyst Ratings General Best of Benzinga

 

Related Articles (NBIX)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SYBXChardan CapitalInitiates Coverage On20.0
GEJP MorganUpgrades6.0
FEYEMorgan StanleyDowngrades21.0
ADCJefferiesUpgrades70.0
HTAJefferiesDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

BTIG Maintains Neutral Snap Thesis Ahead Of Q2 Report, But 'Patience Is Wearing Thin'

A Look At Twilio's Huge Quarter